How to Invest in a Historic Market Sell-Off

It's not hyperbole to say we're in the middle of a historic market sell-off -- the data backs it up. Consider that the S&P 500 peaked at nearly 3,400 a month ago. Since then, it has cratered almost 30% as investors consider the wide-reaching ramifications of the COVID-19 pandemic. This sell-off is fast approaching the 34% drop of 1987 -- one of the worst bear markets in U.S. history.

Some want to invest but want to know if we've reached the bottom. However, that's a question no one can answer, and it doesn't matter anyway. Consider our last bear market: the Great Recession of 2007 to 2009. The S&P 500 would lose over half its value, but in the long run, it didn't matter whether you invested in 2007, in 2008, or at the bottom in 2009.